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Berkshire Hathaway Inc. Message Board

  • catch20two catch20two Oct 1, 1998 2:01 PM Flag

    sky is falling

    just about everything we knew that brk owned
    (coke, gillette, etc.) is in trouble. question is, do we
    still own it? and question 2, what's warren doing? time
    to buy yet? i would guess he's inching into things.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • .............I don't think the skid is over by a
      long shot, so I don't see WEB deploying money for a
      while......if he's going to buy another company for us, it will
      be smarter to wait IMHO........also IMHO these
      things play themselves out slowly.........in the fall of
      '29 the market peaked on Sept 3........panicked on
      Oct 29.......and bottomed for the year in mid Nov.
      And then a little bull began; which crested followed
      by the long, painful desent into the cruelest of all
      the years.....1932. By then, fistfights were breaking
      out in bank lobbies.....those that weren't shut down
      that is. A lot of the blame for those times was laid
      at the door of wild margin trading. Well, they got a
      new name for it nowdays.......it's called hedge-fund
      "leverage"............the beat goes on........

    • .........an interesting sidebar to the
      tale...........WEB's offer was contingent on the resignation of LTCM's
      management.........the banks however were willing to leave LTCM
      management in place.........they said that the LTCM was so
      complicated that only LCTM people could run it...."meet the
      new boss,same as the old boss"............

    • He got rid of him when Soly had that bond scandal and WEB had to step in to save the firm.

      Good luck to all.

    • Who has cash?!!! WEB has cash. WEB has all the options.
      No brainer here.

      Good luck to all.

    • Thank you Marilyn Vos Savant of Parade
      Magazine!

      Fewer profanities, better spelling, neater typing, more
      logical thinking.

      Goals of the Yahoo! Message
      Board Robot Patrol.

      The spelling of "Salomon"
      probably got butchered on Ellis Island. Whatever happened
      to Hutzler?

    • "

      ........I think the problem Congress
      has with this deal is that 3 of the banks come under
      the FDIC safety net........so, if a
      bank melts
      down over this bailout, the taxpayers will have to
      clean up this mess.........the old S&L mess deja'
      vu....... "

      Very good point...that would severely
      piss me off...

    • ........I think the problem Congress has with
      this deal is that 3 of the banks come under the FDIC
      safety net........so, if a bank melts down over this
      bailout, the taxpayers will have to clean up this
      mess.........the old S&L mess deja' vu.......

    • This is an excerpt, for the full story, see AIG's
      NEWS section on Yahoo.

      Q&A About Hedge
      Funds
      By MARCY GORDON
      AP Business Writer


      WASHINGTON (AP) -- Hedge funds are under close scrutiny
      because of the $3.6 billion private bailout last week of
      Long-Term Capital Management LP, facilitated by the Federal
      Reserve Bank of New York. Outside of Wall Street, little
      is known about these secretive and largely
      unregulated investment funds.
      Here, in question and
      answer form, is a look at hedge funds
      ....
      Q: Who
      was running Long-Term Capital when it got into
      trouble?

      A: The 4-year-old fund's chairman, John
      Meriwether, is one of Wall Street's most celebrated traders.
      His senior partners include two Nobel laureate
      economists and a former vice chairman of the Federal
      Reserve. The fund is based in Greenwich, Conn.

      Q:
      What happened in the past few weeks when Long-Term
      Capital nearly collapsed?

      A: A group of major
      banks and brokerage firms began talks about chipping in
      to save it, with officials of the Federal Reserve
      Bank of New York acting as facilitators and providing
      office space.

      At one point, the fund's managers
      reportedly turned down a $250 million buyout offer by
      legendary investor Warren Buffett, American International
      Group Inc. (NYSE:AIG) and Goldman Sachs. The offer was
      conditioned on Meriwether being ousted.

      When it was
      over, the group of banks and brokerage houses had
      agreed to put up $3.6 billion to rescue Long-Term
      Capital and take control of it. In addition to the three
      banks mentioned above, the group also includes
      brokerage houses Merrill Lynch & Co. (NYSE:MER), Morgan
      Stanley Dean Witter, Goldman Sachs, Salomon Smith Barney
      and several big European banks.

    • "I doubt LTCM is that stupid. Already more than 3
      billions injected to LTCM, not that desparate. Wall Street
      just want
      to a dirt cheap impression to WEB. Maybe
      80 cents for 1 buck. "

      Actually, they
      accepted .10 for a buck.

      They didn't really get
      bailed out. They just found a buyer who wouldn't
      fire-sale the holdings. The investors don't own anything
      anymore, they get to split 450 million.

      The only
      savings here is the market, which doesn't suffer all the
      selling, and maybe the banks, if they got a good buy for
      the fund. That will remain to be seen.

 
BRK-A
192,500.00-540.00(-0.28%)Jul 10 4:01 PMEDT

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